Hanoi, Viet Nam, September 15, 2025—Vietnam Prosperity Joint−Stock Commercial Bank (VPBank) has reached a major milestone in its sustainable growth journey with the issuance of a landmark sustainability bond — the first by a private bank in Viet Nam. IFC is investing $200 million in the bond, which will significantly expand VPBank’s lending to smaller businesses, especially women entrepreneurs, and create tens of thousands of jobs, while also supporting climate‑friendly projects.
The five‑year, $300 million bond, privately issued to IFC and the French development finance institution Proparco as parallel investors, will finance projects delivering both social and environmental benefits under VPBank’s newly established Sustainable Finance Framework (SFF).
Of IFC’s investment, 60 percent will support lending to small and medium enterprises (SMEs), with half of that dedicated to women‑owned businesses. The remaining 40 percent will fund eligible climate projects. The expansion of VPBank’s SME loan portfolio is expected to create up to 38,000 jobs over the next five years, boosting incomes and economic opportunities across the country.
This issuance comes at a time when SMEs — which account for one‑third of jobs in Viet Nam — continue to face significant financing gaps. At the same time, the country will require substantial investment to meet its goal of transitioning to a low‑carbon, high‑income economy by 2045. As of September 2024, climate finance represents only 4.5 percent of the banking sector’s total credit balance.
“This landmark issuance represents a major milestone in VPBank’s sustainable development journey and reaffirms Viet Nam’s capacity to connect with global green capital flows,” said Nguyen Duc Vinh, CEO of VPBank. “Proceeds from the bond will be directed toward priority green and social projects, advancing the government’s net zero commitment and fostering a prosperous, sustainable future for the country.”
Alongside its investment, and with support from the Australian government, IFC has been providing advisory assistance to VPBank to assess green finance opportunities, build internal capacity on climate finance in line with international best practices, and develop its SFF — a critical tool guiding how an issuer mobilizes and uses green funding effectively.
"This is a pioneering transaction for Viet Nam’s banking sector and a model for other financial institutions in the country,” said Thomas Jacobs, IFC Country Manager for Viet Nam, Cambodia, and Lao PDR. “By anchoring VPBank’s first sustainability bond and providing technical support, IFC is helping to set market standards for sustainable finance, mobilize private capital, and channel funding to where it is most needed — SMEs, women entrepreneurs, and climate projects."
Over the past five years, VPBank has mobilized $2 billion in sustainable finance for a wide range of green and social projects. It is also a member of the Alliance for Green Commercial Banks, an IFC initiative that equips member banks with tailored training, access to a regional peer-learning network, and opportunities for technical exchanges to help scale climate solutions.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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